India gold futures slip on overseas fall, seen weaker

MUMBAI, July 23 (Reuters) - India's gold futures weakened on Wednesday, breaking below the psychological 13,000 rupees per 10 grams mark, weighed by falling crude oil.

Analysts said the metal may trade sideways during the day looking for fresh signals.

"The bearish stretch is likely to continue until there are fresh signals on crude oil's next moves and what the U.S. wants to do with interest rates," said an analyst at Motilal Oswal Commodities Broker Pvt Ltd.

Overseas gold fell after crude oil slipped the previous day on easing threat from a hurricane and concerns over U.S. demand.

The metal also fell as a Federal Reserve official said rising inflation in the U.S. may necessitate rate hikes, which pushed the dollar higher.

Gold generally has an inverse relation with the dollar as the two compete for funds. But it tracks crude oil as the latter signals inflation, while gold negates it.

The benchmark August gold on the MCX was seen facing resistance at 13,351 rupees per 10 grams and support at 12,911 rupees, said Subodh Gupta, analyst at Anand Rathi Commodities.

Open interest for August gold was at 9,217 lots, down from 9,338 on Tuesday. Volume on the previous day was at 77.165 kg.

Silver futures were also seen tracking gold and might trade below 25,000 rupees per kg, analysts said.